Nasdaq looks to delist crypto miner Argo Blockchain for poor stock performance

London-based Bitcoin miner Argo Blockchain (ticker ARBK) will be delisted from the Nasdaq exchange due to a consistently low share price, according to an announcement on Tuesday.

The firm received a letter from Nasdaq "indicating that it was not in compliance with the minimum bid price requirement" needed to maintain its dual listing in January. Argo is also listed in London under the ticker ARB.

The company was given a 180-day “cure period” to lift its stock above the predetermined $1 limit needed to stay on the Nasdaq. Its failure to lift its bid price for at least 30 consecutive days triggered a deficiency notice on July 15.

Nasdaq maintains listing standards like its pricing floor to ensure market integrity, investor confidence, and financial stability.

ARBK opened the year trading around $0.60 and has gradually declined since to reach as low as $0.18 in June, according to The Block’s price page. Since the beginning of July, it has seen a notable spike to as high as $0.50 on July 18 before returning to a downward trajectory.

The stock now trades at $0.31, down about 4% since the delisting announcement was made. It has a $27.6 million market cap. The company went public on Nasdaq in September 2021 at $16.60 a share.

"In accordance with the Nasdaq Listing Rules, Argo intends to request a hearing before a Nasdaq Hearings Panel," the company wrote. "The hearing request will automatically stay any suspension or delisting action pending the conclusion of the hearings process and it is expected that the Company’s securities will continue to trade on Nasdaq under its trading symbol: ARBK."

Argo's announcement did not mention a plan to boost its performance or a financial arrangement like a reverse stock split, which is sometimes performed to artificially boost a stock's price.

"There can be no assurance that Argo will be able to regain compliance with the minimum bid price requirement or will otherwise be in compliance with all other applicable Nasdaq Listing Rules, or that Argo’s hearing will be successful," the company said.

Argo is a crypto mining business with a hydroelectric facility in Quebec, Canada. Founded in 2017, the company is notable as the first crypto mining signatory to the Crypto Climate Accord. Notably, in 2022, Argo sold off its Texas-based Helios mining center — the largest in the United States — to Galaxy Digital to stave off bankruptcy.

In March, Argo named former Arkon Energy CEO Justin Nolan as its new chief executive officer.